Potential Decoupling in Inflation and Monetary Policy

• Asymmetry in consumer baskets of advanced and EMEs.

• • Food is more significant in the basket of EMEs and developing economies.
  • • Food prices has potential to increase due to
    • • Rapid growth,
      • Lack of sufficient agricultural productivity growth in EMEs and developing economies.
      • Rapid employment shift from agriculture to industries in EMEs.
  • High-tech consumer products are more significant in the consumer basket of advanced economies.
  • • Rapidly declining price and increasing quality of especially CIT products.